Monster Beverage Buys Owner of Craft Breweries Cigar City, Oskar Blues for $330 Million

The deal comes as soda makers and alcohol companies move onto one another’s turf in bids to spur growth.

Constellation Brands Inc.

STZ.B 1.65%

last week said it struck a deal with

Coca-Cola Co.

to launch canned cocktails under the Fresca soda brand. Last year, Coke introduced an alcoholic version of its Topo Chico seltzer in a partnership with

Molson Coors Beverage Co.

TAP.A 3.91%

PepsiCo Inc.,

meanwhile, is set to roll out an alcoholic version of Mountain Dew in a venture with Samuel Adams brewer

Boston Beer Co.

SAM 0.82%

And

Anheuser-Busch InBev SA

BUD 3.08%

this month is introducing a line of Bud Light-branded hard soda in cola, cherry-cola, orange and lemon-lime flavors.

In 2019,

Rodney Sacks,

now chairman and co-CEO of Corona, Calif.-based Monster, told shareholders that the company had its sights on hard seltzers, malt beverages and spirits.

“We do have an appetite to look at alternative brands and to develop more beverages in the nonalcoholic…as well as the alcoholic market,” Mr. Sacks said at the time.

The CANarchy acquisition includes the Cigar City, Oskar Blues, Deep Ellum, Perrin Brewing, Squatters and Wasatch brands but excludes CANarchy’s stand-alone restaurants.

Monster said it expects to complete the transaction during the first calendar quarter, adding that the organizational structure for the energy-drinks business will remain unchanged and that CANarchy will function independently.

—Colin Kellaher contributed to this article.

Write to Jennifer Maloney at [email protected]